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EFI could assume management role after Tracker task completed

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Exchange Fund Investment (EFI) should remain in existence after it completes its mission of selling the bulk of the government's Hong Kong stock portfolio, according to a director.

Chan Kam-lam said EFI should be retained to manage the rump of the portfolio so the government would not be directly involved in the stock market.

EFI was set up in October 1998 to manage the stock portfolio the government bought for HK$118 billion during its controversial market intervention in defence of the currency peg.

The share custodian on Wednesday began selling the final HK$6 billion batch of units in the Tracker Fund, the vehicle it set up in 1999 to dispose of the portfolio.

The EFI board would meet soon to discuss whether it should be dissolved or take on a new role after this quarter's sale was completed, Mr Chan said.

He personally felt EFI would be needed after the disposal, but the final decision would be taken by the board.

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